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LGL
LIBU
LGL-Liberty Group Limited - Overview of trading: four months ended 30 April 2007
Liberty Group Limited
Incorporated in the Republic of South Africa
Registration number 1957/002788/06
("Liberty Life")
Alpha Code : LGL
Issuer Code: LIBU
ISIN Code : ZAE000057360
Overview of trading for the four months ended 30 April 2007
Introduction
Favourable equity markets buoyed the operational performance of both the life
and asset management businesses during the period. The integration of Liberty`s
and Stanlib`s marketing, sales and distribution businesses and the conversion of
Liberty`s annuity book to the Compass system were completed in the period.
Life Assurance (Liberty)
Liberty`s indexed new business was R1 690m for the first four months of 2007, up
13.0% on the same period in 2006 as reflected in table 1. All retail channels
performed well and indexed individual new business volumes grew by 15.2%. Risk
products continued to sell well, augmented by strong sales of the new endowment
products launched in 2006. Corporate new business recurring premiums increased
by 18.0% but corporate single premiums declined.
Notwithstanding the negative effect of higher asset levels on withdrawals and
the run off in the Capital Alliance book, retail cash flows were positive.
Management expenses were tightly controlled and renewal costs were slightly
better than actuarial assumptions. The weighted average gross investment return
was 11.5% compared to 12.4% for the same period in 2006.
Asset Management (Stanlib)
Assets under management increased to R323bn during the period (up 9.9% on the 31
December 2006 comparative) and investment performance continued to show
significant improvement. Stanlib was ranked second in the Alexander Forbes SA
Large Manager watch over the 12 months to 30 April 2007, and the majority of
Stanlib`s unit trusts were in the top half of industry surveys over the same
period.
Total sales for the period were R54.0bn (up 34.8% on the 2006 comparative) as
reflected in table 2.
Retail net cash flows were positive at R1.3bn compared to R4.3bn in 2006. Total
net cash flows were positive at R7.0bn compared to R8.2bn in 2006.
Audit/Review
None of the figures have been audited or reviewed by the Group`s auditors.
Conclusion
Life assurance retail sales for the period were good and continue to improve,
suggesting that the initiatives taken in the early part of 2006 are having the
desired effect. Stanlib`s investment performance has improved significantly
and, if maintained, should translate into even stronger net cash flows.
Liberty Group new business for the four months ended 30 April 2007
Table 1 Liberty Life on balance sheet new business for the four months ended 30
April 2007
2007 2006 % change
Rm Rm
Single premium new business 4 149 4 010 3.5%
Individual Life 3 670 3 262 12.5%
Corporate Operations 479 748 (36.0%)
Recurring premium new business 1 275 1 094 16.5%
Individual Life 1 006 866 16.2%
Corporate Operations 269 228 18.0%
Total new business 5 424 5 104 6.3%
Individual Life 4 676 4 128 13.3%
Corporate Operations 748 976 (23.4%)
Indexed new business 1 690 1 495 13.0%
Individual Life 1 373 1 192 15.2%
Corporate Operations 317 303 4.6%
Table 2 Stanlib off balance sheet new business for the four months ended 30
April 2007
2007 2006 % change
Rm Rm
Retail sales excluding money 9 180 11 145 (17.6%)
market
Institutional sales excluding 5 503 5 781 (4.8%)
money market
Total sales excluding money 14 683 16 926 (13.3%)
market
Money market 39 363 23 161 70.0%
Total sales 54 046 40 087 34.8%
Johannesburg
24 May 2007
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 24/05/2007 09:00:01 Produced by the JSE SENS Department.
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